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BRITISH AIRWAYS DILEMMA1 Harash J. Sachdev, Eastern Michigan University H. Robert Dodge, Eastern Michigan University Hugh B.

McSurely, Eastern Michigan University Case Objectives and Use This case illustrates the challenges and burdens environmental factors (e.g., political/legal) put on an executive team. Additionally, it demonstrates the effects drastic changes in marketing strategies have on an airlines performance. It also encourages a student to acknowledge the complexities specific to an airline industry, and to focus on customer relationship management literature as a guide to resolve some pertinent issues pertaining to the case. This case may be taught at both the graduate and undergraduate levels, depending on the course objectives. This case may be appropriate for a Consumer Behavior, Service Marketing, International Marketing, or Marketing Management class. The topics covered include market segmentation, performance measures, environmental factors affecting a firm, relationship marketing. Case Synopsis Mr. Rod Eddington had recently taken over as CEO of British Airways and was faced with the turmoil left by his predecessors. The airline was faced with loss of market share in several international routes. Additionally, the merger with American Airlines had failed to go through with the airline regulatory board. Furthermore, BAs profits had eroded, resulting in a loss of $330 million in 2000. As if this news wasnt depressing enough, terrorists had attacked the U.S. using hijacked planes, which meant immediate loss in revenue passenger miles for the U.K. U.S. routes. BA had to refocus its routing, plane allocation, and other resources in the short-run. In 2000, BA had launched premium product and services programs to help them increase profits. These programs were tailored to the premium class. Included among these innovations was the Club World lounge in the sky, which in certain major airports (e.g., Heathrow) provided passengers with the comforts of a home (e.g., private showers, toiletries, valet service, message, mini gym, etc.). Additionally, the business class passengers would get the comforts of flying beds during their flight (horizontal adjustable beds). Business had picked up in certain routes, as much as five percent improvement in market share. But the current disturbing news would take its toll on its innovative strategies. Mr. Eddington called an emergency meeting with one of his bright MBA graduate Marice Bronson, a senior marketing manager, in order to generate recommendations for a short1

Contact Person: Harash J. Sachdev, Eastern Michigan University, Ypsilanti, MI 48197. Mail: 469 Owen Building, College of Business, 300 W. Michigan Ave., Ypsilanti, MI 48198. Voice (734) 487-3165; FAX (734) 487-2378; e-mail: Harash.Sachdev@emich.edu

term plan of action. He also asked Marice to identify any studies BA would need to commission the companys strategic planning session in two months.

GROUP CORTELAZZI IN THE CZECH REPUBLIC Lester A. Neidell, The University of Tulsa Case Objectives and Use This case presents marketing strategy alternatives for an Italian company operating in the Czech Republic. Strategic models such as Ansoffs Product/Market matrix, and/or the Strategic Planning Gap, can be used to categorize the alternatives presented. The issue of managerial resources and limitations is ever-present. Beyond the analysis of alternative growth paths the case involves a very rich cultural tableaux. Italian and Czech work habits and traditions are perceived to be vastly different. Introducing free enterprise into a former Communist nation, and the integration of former Communist countries into the European Union, are a vital part of the case. The teaching note is written for a senior course in Marketing Strategy, Marketing Management, or International Marketing. Since the case has many subtleties, it is best used toward the end of the course. Case Synopsis Following a dreadful 1995 experience with what passed for Italian pasta in the Czech Republic, Ernando Cortelazzi established a presence in the Czech Republic two years later. Year 2001 results show Czech sales exceeding U. S. 12 million, about 38 percent of total company sales. Cortelazzi is continually looking for ways to expand his company sales, but also must plan for the expected Czech entry into the European Union in the year 2004, and the impact of this on his business. The case details initial startup issues, including the (perceived) inability to hire capable Czech personnel. As a result, the majority of the Czech companys employees have Italian roots. In an attempt to bolster his companys presence in the Czech Republic Cortelazzi expanded beyond his original target markets of upscale restaurants and hotels into consumer sales through retail stores. He is also considering some strategic alliances with larger food distributors and/or outright purchase of smaller competitors, as well as product line expansion. Overhanging all these efforts is the continued difficulty of dealing with Czech bureaucrats, most of whom were former Communists and who look suspiciously at his success. The company is very thin in management talent; all expansion efforts seem to come from Ernandos own efforts. He visits the Czech Republic at least twice monthly, but in previous years the Czech startup claimed 200 days of his time. Contact person: Lester A. Neidell, The University of Tulsa, Tulsa, OK 74104 Mail: Department of Management and Marketing Voice: (918) 631-2943; FAX: (918) 631-2083; email: lester-neidell@utulsa.edu

LAND ROVER RETAIL CENTRES: A VISION FOR BUILDING BRAND EQUITY Stewart W. Husted and Frank Whitehouse Lynchburg College Case Objectives and Use The following case study is intended for Retail Management or Marketing Management courses at the undergraduate or graduate levels. This case illustrates the following concepts: environmental analysis (including buyer behavior of consumers), retail pricing, customer communications, store facilities management, customer service, and strategic retail management. The case also covers strategic marketing (including , competitive advantage), segmentation, consumer behavior, product development, branding, positioning, retailing, personal selling and sales promotion, and pricing. The teaching objectives of this case are: 1. 2. 3. 4. 5. To explore the concept of brand equity; To illustrate how the organization and execution of retail selling can support a product positioning strategy; To show how a small company with limited resources can still compete successfully with much larger, much better capitalized competitors; To prompt assessment of whether a retailing strategy, by itself, can be the basis for sustained (or strategic) competitive advantage; To determine alternative marketing strategies for building brand equity in the North American market.

Case Synopsis This case describes how Land Rover North America, Inc. (LRNA) has redesigned their dealerships and selling process with the objective of building and enhancing equity for its brand. Land Rover is a niche player in a very crowded and rapidly maturing product category. Competition is fierce and is dominated by large global competitors with extensive dealer networks who differentiate their products largely by size, features, and price. The company has relatively few dealerships and cannot afford the volume of advertising or promotion that its primary competitors can. The company must choose to depend upon positioning its product as a specialty brand, characterized by brand insistence on the part of its buyers. _______________________________________________________________________ _ Stewart W. Husted, 2224 Surrey Pl., Lynchburg, VA 245303

434-384-3782 (H), Sailcity@msn.com MASON-DIXON CAF R. Edward Bashaw, University of Arkansas at Little Rock James A. Karrh, University of Arkansas at Little Rock Case Objectives and Use The objective of this case is to illustrate the complexity of brand development and use of market information to make strategic marketing decisions within the US restaurant industry. Students should be able to synthesize the information given in the case in reaching a set of recommendations. The Mason-Dixon Caf case and teaching note, with its emphases on branding, segmentation, and marketing strategy, is targeted primarily for undergraduate and graduate courses in marketing management and marketing strategy. It is also useful for courses in marketing research, entrepreneurship or small-business management, or consumer behavior. Case Synopsis The Mason-Dixon Cafs, a profitable 23-unit owned and operated chain of familyoriented restaurants in Arkansas, Tennessee, and Oklahoma, have had zero same-store revenue growth during the past three years. Although convenience surveys of customers suggest that patrons give the Cafs high marks on food quality and value, growth may have been hurt by the lack of any clear brand image or persona. There are suspicions that the Cafs are in target consumers consideration sets, although perhaps not a first choice. In order to generate growth, Mason-Dixon management is focusing on ideas to generate repeat business and prompt weekday lunch customers to frequent the Cafs during lessbusy dinner and weekend occasions. Mason-Dixons marketing agency has encouraged management to step back from a short-term strategy and consider re-positioning. The agency presented a SWOT analysis, has broken down the Mason-Dixon customer base into ten decision-making segments according to dining occasion, and is pushing management to adopt an overall branding strategy. The challenge for students is to decide whether a profitable operation with no immediate threat should risk its core business for a potentially major marketing overhaul--and, if so, exactly what the new marketing and branding strategy should be.

Contact Person: R. Edward Bashaw, University of Arkansas at Little Rock Mail: Dept. of Marketing/Advertising, College of Business, University of Arkansas at Little Rock, Little Rock, AR 72204-1099

Voice (501) 569-8863; FAX (501) 569-8363; e-mail rebashaw@ualr.edu PAPER SINGLE SOURCING Donald E. Saunders, Miami University Case Objectives and Use This case shows the complexity of an industrial marketing strategy and the difficulty with approaching marketing strategy on an ad hoc basis, without an integrated approach. Both strategy formulation hurdles and strategy implementations issues are included, ready to be discovered by students. Porter analysis, industry analysis, industry segmentation, buyer-seller relationships, sales force modeling, and core competency development can be addressed by the students and teacher, as these topics are integral to the case discussion. The teaching note was written for use in business-to-business marketing courses and for marketing strategy courses at the senior undergraduate and MBA levels. Case Synopsis James Battle, marketing manager for an industrial specialty chemicals company, was confronted with a situation that had him trapped. On one hand, his SBU was faced with paper industry dynamics in the form of corporate procurement demands for a broad chemicals portfolio and lower costs in use. On the other hand, his long-standing marketing program was outmoded and did not match well with these new corporate procurement demands. The case opens with James observing a visualization of his problems in the form of an industry golf outing that showcased a competitors selling relationship with a procurement manager for the worlds largest paper company. The problems for James in creating a successful marketing strategy that fit the industry changes and was within his SBU capabilities comprise the content of the case. The setting of this case in the paper industry creates a business-to-business industrial environment, in which James marketing strategy development has been and is being addressed imperfectly. A niche product/service offering is described, as is a sales force model that seems inappropriate to its tasks. Tentative, incomplete strategy changes were made before a more complete understanding of the industry forces was developed. Once the strategy issues had been more fully understood, the marketing dilemma to be resolved was apparent. Contact Person: Donald E. Saunders, Miami University, Oxford, OH 45056 Mail: Department of Marketing, Miami University, Oxford, OH 45056 Voice (513) 529-8320; FAX (513) 529-1290; e-mail: saundede@muohio.edu

THE STRATEGIC IMPLICATIONS OF COMPETITION: THE CASE OF A BRAZILIAN TELECOMMUNICATIONS COMPANY Cynthia W. Cann, University of Scranton Case Objectives and Use This case can be used effectively to exemplify the Strategic Marketing Concept. The case introduces the concept of marketing planning and demonstrates the process involved in strategic planning. Specifically, the case emphasizes how markets change, and the need to constantly monitor the critical factors involved. The case emphasizes the importance of evaluating the current situation of an organization before developing a marketing strategy and defining a sustainable competitive advantage. The teaching note was written for an undergraduate course in Introduction to Marketing to exemplify the Strategic Marketing Concept and the use of a sustainable competitive advantage and/or to introduce the concept of marketing planning. It can also be used in an upper level course on strategic marketing, such as Marketing Management, to reinforce the concept of competitive analysis and positioning, or as an example of the preliminary stages of the planning process. The case is also appropriate for an International Marketing class and can be used to reinforce the dynamic aspects of the competitive atmosphere in many emerging markets. Case Synopsis CTBC Telecom is a privately owned Brazilian telecommunications company that is facing competition after doing business as a monopoly for forty-eight years. The company has been preparing for this moment for the past ten years. The company has reorganized, changed the culture, restructured, educated and trained all associates, visited and studied benchmark companies and undertaken a pioneering spirit and total customer focus. Those in charge of the company know that CTBC must find some kind of sustainable competitive advantage to be a long-term player in the changing telecommunications market. The Director of Planning and his Planning Committee, along with the six directors of the company take a two-day retreat to a nearby resort to develop a strategic plan. The objective of the retreat is to develop a vision and mission for CTBC, as well as to set goals and objectives for the future direction of the company based on internal and external factors. The mission of the enterprise is re-evaluated and redrawn, and a vision for the future is developed. With data provided by the Planning Team, the group examines internal and external data, and performs a SWOT analysis of the enterprise. In order to determine a long-term strategy for CTBC, including a plan for a sustainable competitive advantage, the group sets to work analyzing the data and determining the best options and direction for growth for the company. As the retreat comes to a close, the group is just putting the finishing touches on the goals and objectives that will give direction to CTBC over the next 3-5 years. Contact Person: Cynthia W. Cann, Kania School of Management, University of Scranton

Mail: Department of Management/ Marketing, Scranton, PA 18510 USA Phone: (570) 941-4398; Fax: (570) 941-4826; e-mail: cannc1@scranton.edu

TRUESTARS * NEW VENTURESOLUTIONS FOR THE GARAGE (A): DISTRIBUTION AND BRANDING DECISIONS Lauren Oliver Strach, Andrews University Case Objectives and Use This case illustrates the challenges an established manufacturer faces when trying to change its direction for the future, by focusing on innovation, and extending its core competencies into new areas. By launching a new product line it must discover best practice for a new industry and rethink its traditional marketing strategies. This case addresses distribution channel and branding issues and the product life cycle for a new product category. This case can be used for both undergraduate and graduate marketing strategy classes as well as marketing channels and new product development classes. Because the marketing channel alternatives are explicitly set out in the case, students may be tempted to jump directly into the channel decision choices, but the instructor should encourage the students to pause and consider the target issues as well as the implications of the new product category. Case Synopsis TrueStar Corporation, one of the largest appliance manufacturers in the world, was about to launch a new product line. This was the first product line coming out of the TrueStars new Innovation Division whose goal was to take TrueStars core competencies and develop new products beyond those of the maturing appliance industry. The products, innovative storage and cleaning units for the garage, represented not only a new product line for the corporation, but also a completely new male homeowner target market. With the product and the price determined, TrueStar was now focused on two issues. Branding decisions had to be made: should the products be names under a completely new brand (not using the TrueStar name at all); should they be named with a new brand under the TrueStar umbrella family of products; or should they be produced as an Original Equipment Manufacturer and sold to a retailer such as Sears under a product line such as Craftsman? And the second issue was choosing the distribution channel partners. The challenge was how to achieve rapid market penetration, stay within the launch budget, while at the same time developing awareness and knowledge of this new product category. There were several choices for channel partners representing diverse methods of distribution that needed to be considered. *This case is based on a Fortune 200 company who has asked to remain anonymous until the launch of this product line. Projected launch date: 4th quarter, 2002. Contact Person: Lauren Oliver Strach, Associate Professor of Marketing, Andrews University,

Berrien Springs, MI 49104. Phone : (616) 471-3107); Fax: 616-429-0946, email: laurensgarden@juuo.com

UDDERLY DELICIOUS Granjas de Venezuela S.A.. Part Two: International Production Planning Susan D. Peters, California State Polytechnic University Richard P. Green, University of the Incarnate Word Case Objectives and Use The primary purpose of this case is use in a graduate level Marketing Management class as an example of the trade-offs that must be made between what is desired and what is possible in developing a marketing plan. The case is based upon a real dairy processing plant located in Maracaibo, Venezuela. It may be used as a stand-alone assignment or in conjunction with Udderly Delicious Granjas de Venezuela Part 1 Marketing Research and Market Plan. The marketing research and tentative product selection from Part 1 is used to examine production possibilities with the goal of determining a final product mix that satisfies the marketing plan, and is reasonable and feasible for production. A list of possible products is provided for stand-alone use. This case can also be used in a Production Operations Management class as an example of line-balancing and equipment specification. It can be used in a general International Business class as an example of production situations in an international business setting, in a Business Development class or in various Agribusiness or Entrepreneurship classes. Case Synopsis The case starts where Udderly Delicious Granjas de Venezuela Part 1 leaves off. The earlier case introduces the situation (briefly recapped in the current case) and sets the scene for converting marketing research into a list of desired products. This list becomes the basis for designing production lines. If both cases are used, one option is to have part of the class develop the product list and another group to determine the ideal production plan. The two sides may then be required to negotiate a reasonable compromise. The case also may be used in conjunction with the entire Granjas de Venezuela S.A. series to cover the selection of products to produce, the evaluation of alternative projects, foreign risks and developing of a full-scale business plan as well. The various Granjas de Venezuela S.A. cases can be introduced at different points throughout a semester, the entire case being developed as appropriate to the order of the course work. Alternately, several portions of the cases can be presented together as a comprehensive business plan. _________________________________________________________________________ _____ Contact Person: Richard P. Green, University of the Immaculate Word, San Antonio, TXMail: 4201 North Broadway CPO 461, San Antonio, TX 78209 Voice:(210) 283-5004 Fax: (210) 223-5125 email: greenr@universe.uiwtx.edu

Wiremold: The Wire Management Business Improving the New Product Development Process Peter J. LaPlaca, Rensselaer Polytechnic Institute Martha C. Fransson, Rensselaer Polytechnic Institute Steven M. Maynard, The Wiremold Company Case Objectives and Use This case describes how The Wiremold Company, a leading manufacturer of wire management solutions, transformed its new product development process through the use of Quality Function Deployment (QFD). The case includes a brief description of preQFD processes and policies, and detailed descriptions of two of the early implementations of QFD. The case provides students with an opportunity to design a product development process for an approved new product project, and to consider whether or not to continue the use of certain customized features of the companys QFD process. The teaching note was written for graduate courses in new product development, and is expected to be useful to demonstrate how QFD may be customized for specific development projects. Case Synopsis In September, 1993, Wiremolds product development steering committee met to review progress on current new product projects, to discuss ideas for new products and to select those that would become formal new product development projects. The members of the committee were Art Byrne, president, Orry Fiume, vice president for finance, Steve Maynard, vice president for engineering, and Ed Miller, vice president for marketing. The key issue being addressed was whether Wiremold ought to broaden its business focus to include new wire management products and become a full-line wire management products company. The company had utilized a QFD system to successfully develop two new products and needed to decide if QFD should become the standard system for all new product development projects. The case includes a House of Quality actually used by the company (based on a portion of the data collected during the project). A specific question arose about the next new product being considered which was directed at the institutional market, which was different from the companys traditional commercial and industrial markets. An epilogue brings the case up to date. Contact person: Martha C. Fransson, Rensselaer Polytechnic Institute, Hartford, CT, 06120 Mail: 275 Windsor Street, Hartford, CT 06120-2991 USA

Voice: (860)-548-7831; FAX: (860)-547-0866; e-mail: fransson@rh.edu

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